The Exploration On The Monetary Integration In East-Asian

The Asian Financial Crisis in 1997 gave a disastrous lesson to every economy. They raised proposals and suggestions on strengthening monetary cooperation in their region so as to avoid or decrease such crises and achieve similar economic and social benefits as what Euro has made. With the rapid development of the world economic integration, cooperation seems to be an inevitable way to further the relations between all the countries and regions of East Asia.While Asia explore the progress that the currency integration, European Union's experiences is worthy paying attention the most. The birth of euro in 1999 makds the theory of optimal currency to practice. Six countries in Western Europe sign from 1952《Paris treaty》go to an euro start, after going through all the hardships and setbacks, completed the runification of currency finally, Western Europe lasts for 48 years,build a brighter future forregional economic cooperation.Made in-depth analysis and discussions on the current developments of the euro area, this will help comprehend the theory of optimal currency deeply, and precept also are advantageous to other currencies to cooperate a district reference. Therefore,this paper combine with the Theory of Optimum Currency Areas and refer to Europe Monetary integration , turn the way of thinking and logic of research to currency integral whole in East Asia by its success experience leading. The text is consist of four part:In the first part, the conception of Theory of Optimum Currency Areas is expatiated from the view of East-Asia Monetary integration. Theory of Optimum Currency Areas is brought forward by Robert A. Mundell in 1970's and is reinforced by lots of economists in the after years, which have brought important effect to the practice of monetary cooperation in Europe Union.In the second part, the course of Europe Union Monetary integration is reviewed. Concretely, the monetary cooperation in Europe Union was founded on the meeting of hague in March 1969 which decide economy and monetary alliance《Werner Report》that was supposed to separated into three steps on March, 1971s, EEC chairman decided to adopt《Delors Report》and economy and monetary integration in Europe Union is implemented by three steps until Euro act. The achievement of Europe Monetary integration is the milestone of world monetary history which provide theoretical foundation of monetary integration in real. So, the cause of Europe Monetary integration is analyzed and summarized the conclusion in this part. Firstly, economical integration is the foundation of monetary integration. Secondly, political will mainly impel monetary integration. Thirdly, the chief country in area actively impels the development of monetary integration. Finally, organization of super-country is the executive that advanced monetary integration.The development and dilemma of East-Asia Monetary Corporation is introduced in third part. The country of East-Asia have developed a series of economy and monetary integrations by the directed of economic in Europe. The conception of AMF,the process of ASEAN"10+3"supervise and the foundation of ABF are all the achievement of East-Asia Monetary Corporation. There are three problems of East-Asia Monetary Corporation at the moment. Firstly, the imbalance is exist between in economic standard and degree of market forces. Secondly, there are some weaknesses in politic foundation of monetary corporation. Thirdly, East-Asia difficultly solve the problem in the stage of establish monetary union. To the development of East-Asia and combining with the Europe economic, East-Asia Monetary Corporation supplies the condition for the monetary union's foundation. The feasibility of set up East-Asia Monetary integration is numerous. For one thing, the result of greatly commercial dependence between East-Asia countries is showed by estimate the trade portion in area and the commercial density to East-Asia Trade integration. For the other thing, T.Bayoumi and B.Eichengreen lucubrate that the scale of East-Asia economical oscillation is greater than U.S.A by analyses the symmetry of external economic impact on countries in area and the adjusting speed of national economic interference. The agility of production elements market, but the adjusting speed is faster than U.S.A, both symmetry of impact are not too different. The production elements market has degrees of symmetry. Thirdly, the character of stick in exchange rate is strongly display in East-Asia. Finally, the coordination of economic policy in East-Asia economic system must be considered. Because of the condition of set up monetary cooperation in East-Asia is not sufficient, the Europe experience is not suit to East-Asia. To judge this issue, c countries can adopt the means as follow: firstly, founding region crisis providing and rescuing measure; secondly, impelling the trade development in area; thirdly, the strength of economic integration in East-Asia must be intensified; fourthly, the coordination between super nations must be advanced; finally, founding stabilized mechanism in East-Asia.At last, as a super nation, China playing a decisive role in area, it should make positive contribution to East-Asia Monetary Corporation's development. The impact of East-Asia Monetary Corporation to China and the function that China will play are all discussed in this part.This is a conclusion by analysis that too many factors such as politics, economy, history, culture and so on, are all restricting the further development of currency cooperation in East Asia. At present the East Asia countries and regions have not totally reached the European Currency Union standard yet , it shouldn't put forth effort to pursue united currency in the near future; however from a long-term point of view, with East Asia strengthen and deepen currency cooperation monetary integration, the goal to integrate currency will be achieved. In the meantime , China's active participation in the East-Asia Monetary integration will have a profound influence on it.